2 critical strategies finance must implement

Vanessa Stoykov,  creator,  No More Practice

The pandemic has significantly changed the way we live - both in Australia and around the globe.

No more so that in financial services, and communications - money and connecting with people.

Significant pressure on a new reality financial system, nervous investors and people on lock down - with many in dire financial situations, means the relationship any financial organisation has with its stakeholders and community has changed.

Most organisations are reeling and starting to come to terms with a new business as usual - home work force or just plain viability into the future. As an adviser, client communication is key, and investment managers are working hard to keep investors calm as they see their balances diminishing. And super funds are feeling the pinch in an unprecedented way with the announcement from Government that people can access their super early.

We are all dreaming of a day when things return to normal. But reality is - will it ever return to the way it was? The likelihood of that is becoming increasingly low as more businesses and individuals suffer financial losses that they cannot recover from. The government debt levels after our bail out package means that future generations will be paying it back. And the investing world will be left looking for value and recovering the losses incurred for some years to come.

All this means that for most businesses, from small advice groups to large institutions, will have to throw out their marketing and sales plans, and start again with a clean slate. This change has been so significant, that any attempt to reach people and convert them with ‘old’ language and techniques will fail.

While we can all lament the waste of time and cost that has gone into planning, it's time to scrap the thinking and start again - with a new mission in mind. One that recognises the massive changes people have experienced, and the fear and uncertainty of the time and non foreseeable future.

There will be two critical aspects of a change plan for any organisations.

  1. A fast response, up to the minute way of communicating with stakeholders. The way zoom and other video conferencing has been embraced will be a key theme moving forward and on the other side of this pandemic. Which means the old processes of approval and legal will need to be adjusted significantly to account for faster, more up to the minute communications.
  2. People will no longer be ‘sold’ to from financial services. With trust already low post Royal Commission, the loss of account balances in super and investments means that suspicion and distrust will be at an all time high - not to mention worry. Which means organisations need to develop programs that emotionally involve their audience - earning their trust, demonstrating empathy, and having solutions for problems.

I believe the first challenge will actually be easier than the second. Traditional thinking will not create new relationships, and marketers and executives will be pushed to think outside the square and do things very different.

It’s hard to do things differently, and you may need new resources internally, perhaps not even from finance, to help move the strategy in the right direction. For whoever gets it right will earn the loyalty and wallet share from their customer.


The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here

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